Form 26QB: TDS default u/s 200A due to inoperative PAN

Hello @AkashJhaveri ,
Thank you so much. can we pay 20% demand even with out linking sellers PAN and Aadhar now? So this amount can be claimed again in April 2025 or before?

I got short demand notice yesterday. Seller was not linked pan and aadhar . Yesterday seller paid late payment challan to link inoperative pan and aadhar. Kindly help

Hey @alanka,

Once the payment for linking PAN and AADHAAR is made, a request needs to be submitted on the Income Tax Portal.

Moreover, if the transaction happened before 31st March 2024 and the PAN of seller becomes operative before 31st May, you will not be liable to pay TDS at a higher rate. But, if the transaction took place after 31st March, you will have to pay the demand.

Mam can you help I selled a land and now buyer has put more amount of money in 26qb than he has given me and even in wrong dates

@Surbhi_Pal

Received 20 percent TDS demand notice in August 2024 due to seller inoperative pan as it was not linked with aadhar.

Please suggest what can be the final solution so I may proceed that way.

Thanks
Ashish Jindal

Hello all
I have received 19% Notice from traces, against 26QB return.

I have one idea, could you please let us know is this workout or not.

The property agreement is around July 1st week, if I correct the return on or before may 24, is that system will auto fetch the details and remove the demand amount? Later will file the correction return again with exact sale date.

Hey @Shivakumar_Ippakayal @Ashish_Jindal

In this situation, there are no other remedies available. You can either pay the demand or, if the seller is cooperative, cancel the agreement and file a 26QB correction return. However, you will need approval from the Assessing Officer (AO) to proceed with the cancellation. If the AO approves, you can also request a refund for the amount paid when filing the original 26QB.

Hope this helps!

I missed paying TDS for one of the payment to the builder(In construction apartment paid in phases). Recently i paid the missed TDS and sent it to the builder.

Today i got a demand for payment ‘INTIMATION U/S 200A OF THE INCOME TAX ACT, 1961’ and it mentions the penalty(Late Filing Levy) etc., . I looked all around in the e-Filing Home Page, Income Tax Department, Government of India and could not find a way to pay it. Could you help me understand what i should be doing for this?

Hey @Sai_P

You can pay a TDS demand directly on the Income Tax e-Filing Portal.

Simply log in using your PAN, then go to “e-pay tax.” Click on “+New Payment” at the top right corner and select the “Demand Payment for TDS on Property” tab.

Enter the required details, such as the Acknowledgement Number, Seller’s PAN, Intimation ack. number and the breakdown of the interest and penalty amounts as per the Intimation. Then proceed to make the payment.

Hi actually i have purchased property about 5350000/- and registration also completed last week of October and now the PAN inoperative the seller is not supporting for Aadhar PAN link now what is the solution please let me know and in Aadhar there is gender mismatch.

Hello @Yamani_Narender

If a buyer purchase a property from a seller whose PAN is inoperative, they are liable to deduct TDS at the rate of 20% instead of 1%.

You as a buyer need to file Form 26QB and pay TDS @20% within 30 days from the end of the month in which the payment is made. You can deduct the TDS amount from your sell consideration and pay the difference amount to the Seller.

Hope this Helps!

Madam actually i have paid total amount i don’t have idea about TDS and they we can pay with in 30 days so i have given total amount madam. Now he is not supporting to me please help me on this madam

Hello @Yamani_Narender

The seller can claim the TDS amount you paid under Form 26QB as a credit. This TDS is the seller’s liability, which you have paid to the government on their behalf. The seller can use this credit while filing their Income Tax Return (ITR) and can get a 100% refund.

You can explain this to the seller and request a repayment. Alternatively, you can mutually agree to cancel the sale agreement if repayment is not feasible.

Hi.The above threads have been very helpful Surbhi Pal. Just need to confirm that i have paid the tds to 4 buyers with 1% tds of 150000 each and i buyer with 20.8% as shes a NRI and it was paid on 21/oct/24.Now the problem is one of the buyers pan for the 1% TDS was inoperative and have got the demand of 285000 as short payment and 2850 as interest.
Q1)I have got that buyers pan and aadhaar linked,now my question is when i pay 285000+2850,will the seller get the refund back of 285000+15000, i know that the interest 2850 will not be refunded but thats ok?
Q2) I have crossed the date of more than a month today,will the interest increase and how much more do i have to pay?
Q3) And where do i have to pay the this amount? is it on the income tax website or on traces ? and after paying the tds is there any other formality to be done?

Hello @Lee_Ferrao

A1) Yes, the seller can claim TDS credit of 300,000 INR at the time of filing his ITR. Interest amount is a penalty and cannot be claimed.

A2) Interest of 2850 would have increased now since the month has changed.

A3) You have to pay the amount against the demand only from income tax e-filing portal > e pay tax. Nothing to be done then from our end.

In case you need help from a tax expert to accurately calculate the interest and help you pay the tax against the demand, you can book a slot using the below link:

Book a MEET

Thanks.